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ABC Insurance Faces Legal Setback in Professional Indemnity Insurance Dispute

Court Orders Payment of Legal Costs to Law Society of NSW

ABC Insurance Faces Legal Setback in Professional Indemnity Insurance Dispute?w=400

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In a recent legal development, ABC Insurance has been ordered by the New South Wales Court of Appeal to pay the legal costs incurred by the Law Society of NSW in a dispute over professional indemnity insurance (PII) for solicitors.
This ruling marks a significant setback for ABC Insurance in its efforts to challenge the existing PII framework for legal practitioners in the state.

The dispute originated when ABC Insurance sought to introduce its own PII policy for NSW solicitors for the 2024-25 practising year, aiming to provide an alternative to the coverage traditionally offered by the Law Society's subsidiary, Lawcover. This move was seen as an attempt to disrupt the longstanding monopoly in the market and offer solicitors more choice in their insurance providers.

However, the Law Society contested this initiative, leading to a legal battle over the validity and approval of ABC Insurance's PII policy. The Court of Appeal's decision to dismiss ABC Insurance's application to avoid paying the Law Society's legal costs underscores the challenges faced by new entrants attempting to navigate the regulatory landscape of professional indemnity insurance for legal practitioners.

This ruling has broader implications for the PII market in New South Wales, particularly concerning the competition and choice available to solicitors. While the introduction of alternative insurance providers could potentially benefit legal professionals by offering more options and potentially better terms, the legal and regulatory hurdles highlighted by this case illustrate the complexities involved in altering established insurance frameworks.

For solicitors and law firms, this development serves as a reminder of the importance of ensuring that their PII coverage complies with regulatory requirements and is sourced from approved providers. As the legal landscape continues to evolve, staying informed about changes in insurance offerings and associated legal proceedings will be crucial for legal practitioners seeking to manage their professional risks effectively.

Published:Thursday, 5th Mar 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Liability Insurance:
A type of insurance that provides protection against claims resulting from injuries and damage to people and/or property.